The state government, ETSA and the island’s development and business members have since appealed to the Federal Government to approve the works.

ETSA was refused initial permission by the Australian Energy Regulator, an idependent body, to spend up to $86million on the under sea cable and upgrade to the island’s backbone network.

Plans were highlighted in a proposal forwarded by ETSA in July 2009.

The latest decision means a back-up cable will not be in place to service the island for possibly the next five years.

Minister for Energy Patrick Conlon has pointed out to the Australian Energy Regulator, in Sydney, that the island does not have adequate alternative supplies should the cable fail.

The AER’s decision partly comes from the need to reduce the increase in power bills to pay for such projects.

According to ETSA, plans still wait with the company, however a decision will not be made until April this year.

The proposal also included improvements for substations at Kingscote at $1million and Penneshaw, $1.5million and a fourth back up generator to cost $3.5million.

Currently the island relies on one undersea cable and a supply of backup generators.

In the early 1990s plans were put in place to upgrade the island’s electricity supply after

the undersea cable was first built in 1965.